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4 years ago

The difference between a firm's production costs and the value consumers perceive in its products is called ______.

Business

1 answer:

madam [21]4 years ago

7 0

Answer:

The amount of value created

Explanation:

Value creation occurs when a firm perform actions that lead to a rise in the worth or value of the product its produces or the service its renders.

The aim of any business is to create value that give better value to customers in order entice them to buy its commodity at a better price. As a result, the more value a firm creates, the wider will be the difference between the production cost of the firm and the value placed on the products of the firm. This will in turn make the buyers to buy the product of the firm at a higher price which will lead to a higher profitability of the firm.

The implication is that the best method for a firm to increase its profitability is to create more value.

Therefore, the difference between a firm's production costs and the value consumers perceive in its products is called the amount of value created.

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bella blooms is a successful business that sells a liquid spray fertilizer to farmers. the fertilizer consists of rich, organic,

Svetach [21]

When analyzing the industry, Bella Blooms must be concerned about the threat of substitute products or services.

This is one of the threats proposed by Porter in his model of the 5 forces that help to understand market competitiveness.

Bella Blooms must be concerned about the threat of substitute products or services because another fertilizer manufacturer has emerged with the same target market as the company, which could lead to a decrease in Bella Blooms market share.

In the threat of substitute products or services, the customer realizes that they can partially or totally substitute one product for another, which leads companies to actions such as:

develop focused marketing strategies.

adapt your processes to market needs.

Therefore, Porter's 5 forces model guarantees that through the analysis of market factors, it is possible to identify its strengths and weaknesses and adapt its strategy to be competitive and profitable in the market.

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3 years ago

Two or more products are produced using limited resources. The firm would like to determine how many units of each product it sh

inysia [295]

Answer: Product-mix

Explanation:

From the given case/scenario, we can state that this situation describes the problem of product-mix. Product mix that is also known as or referred to as product assortment, tends to refer to total number of product/commodity lines that an organization offers to an individual or to its customers.There are four dimensions to an organization's product mix, these are length, width, consistency and depth.

3 0

3 years ago

After Hurricane Sandy, FEMA (the Federal Emergency Management Agency) advertised in a New Jersey radio station how people affect

Lesechka [4]

After Hurricane Sandy, FEMA (the Federal Emergency Management Agency) advertised on a New Jersey radio station how people affected by the hurricane could file for assistance. In the political marketplace, the decision-makers in FEMA are best characterized as bureaucrats. This is further explained below.

<h3>What are bureaucrats?</h3>

Generally, Officials who operate in a huge administrative system are called bureaucrats.

In conclusion, Federal Emergency Management Agency (FEMA) advertised on a New Jersey radio station how residents impacted by Hurricane Sandy may apply for aid after the storm. FEMA's decision-makers are best described as bureaucrats in the political marketplace.

Read more about bureaucrats

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3 0

3 years ago

After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you

Nimfa-mama [501]

Answer:

before-tax 29.87%

after-tax 26.37%

Explanation:

The return will be the capital gain and the dividend gain.

capital gain: ending market price - purchase price

$ 40.07 - $ 31.17 = $ 8.90

dividend gain: $0.41

total return: $8.90 + $0.41 = $9.31

investment: $ 31.17

rate of return before-tax: 9.31 / 31.17 = 0,29868 = 29.87%

return after tax:

dividends 0.41 x ( 1 - 0.25) = 0.3075

capital gain: (as we hold the share we can use long.term capital gain rate

9.31 x ( 1 - 0.15) = 7,9135

total return: 7.9135 + 0.3075 = 8.221

rate of return after-tax 8.221 / 31.17 = 0,2637471928136 = 26.37%

7 0

3 years ago

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipmen

Gnoma [55]

Answer:

1 Depreciation expeense (Debit) $4,200

Accumulated depreciation (Credit) $4,200

2.Bad Debt expense (Dr.) $6,900

Accounts Receivables (Cr.) $6,900

3. Accrued Interest Expense (Dr.) $1,200

Notes Payable (Cr.) $1,200

4. Accrued Income Tax (Dr.) $14,200

Cash (Cr.) $14,200

5. Cash (Dr.) $4,200

Redemption of Gift Cards (Cr.) $4,200

Explanation:

Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.

8 0

3 years ago